Question: New England Metals is considering adding a
New England Metals is considering adding a new product line that has an expected life of 8 years. The product manufacturer would require the firm to incur setup costs of $6,400,000 to handle the new product line. All product line revenues will be collected as earned. Variable costs will average 35 percent of revenues. All expenses, except for the amount of straight-line depreciation, will be paid in cash when incurred. Following is a schedule of annual revenues and fixed cash operating expenses (excluding $800,000 of annual depreciation on the investment) associated with the new product line. 
The company’s cost of capital is 8 percent. Management uses this rate in discounting cash flows for evaluating capital projects. a. Calculate the payback period. (Ignore taxes.) b. Calculate the net present value. (Ignore taxes.) c. Calculate the accounting rate of return. (Ignore taxes.) d. Should New England Metals invest in this product line? Discuss the rationale, including any qualitative factors, for your answer.
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Year Revenues Fixed Expenses 1 $3,000,000 $1,480,000 2 3,200,000 1,280,000 3 3,720,000 1,280,000 4 5,120,000 1,440,000 5 6,400,000 1,280,000 6. 6,400,000 1,280,000 7 4,480,000 1,280,000 2,720,000 1,120,000
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> Go to your university’s Web site and review the various organizational units within the university. Assuming no transfer pricing exists, make a list of the units that you believe would be classified as cost centers and profit centers.
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> The great global recession has claimed many victims. 51 In many countries, unemployment is at near-historic highs, and even those who have managed to keep their jobs have often been asked to accept reduced work hours or pay cuts. Another consequence of t
> Describe a situation where your perception turned out to be wrong. What perceptual errors did you make that might have caused this to happen?
> Some researchers—psychologist Paul Ekman may be the best known—have studied whether facial expressions reveal true emotions. 185 These researchers have distinguished real smiles (so-called Duchenne smiles, named after French physician Guillaume Duchenne)
> Samantha Parks is the owner and CEO of Sparks, a small agency that develops advertising, promotions, and marketing materials for high-fashion firms. 119 Parks has tended to keep a tight rein on her business, overseeing most projects from start to finish.
> What are employee involvement programs? How might they increase employee motivation?
> What are the three alternative work arrangements of flextime, job sharing and telecommuting? What are the advantages and disadvantages of each?
> What are the main ways that jobs can be redesigned? In your view, in what situations would one of the methods be favoured over the others?
> What is the job characteristics model? How does it motivate employees?
> What are the characteristics of a matrix organization?
> How can flexible benefits motivate employees?
> What are the six key elements that define an organization’s structure?
> What is variable pay? What variable-pay programs are used to motivate employees? What are their advantages and disadvantages?
> How can motivation theories be used to create more motivating work environments?
> How might the job of student be redesigned to make it more motivating?
> One of the members of your team continually arrives late for meetings and does not turn drafts of assignments in on time. In general this group member is engaging in social loafing. What can the members of your group do to reduce social loafing?
> What are the motivational benefits of intrinsic rewards?
> How does group size affect group performance?
> What characteristics contribute to the effectiveness of a team?
> What are the five stages of group development?
> How do group norms influence an individual’s behaviour?
> What are the characteristics of a bureaucracy, and how does it differ from a simple structure?
> What are some examples of impression management techniques?
> Do role requirements change in different situations? If so, how?
> How do you explain the growing popularity of teams in organizations?
> Define group and team. What are the different types of teams?
> When is work performed by individuals preferred over work performed by teams?
> As work has become more global, companies are realizing the benefits of composing teams of employees who not only have different cultural backgrounds, but who live in different countries. 131 These multicultural, multinational teams are extremely diverse
> Identify 4 or 5 norms that a team could put into place near the beginning of its life that might help the team function better over time.
> You and 2 other students carpool to school every day. The driver has recently taken to playing a new radio station quite loudly. You do not like the music, or the loudness. Using one of the conflict-handling intentions, indicate how you might go about re
> The following proposal was made to employees of Montreal-based Quebecor’s Vidéotron cable division: 126 Employees are asked to increase the number of hours worked per week to 40 from 35, while receiving the same pay as working the shorter work week. In a
> While much of this chapter has discussed methods for achieving harmonious relationships and getting out of conflicts, it’s also important to remember that there are situations in which too little conflict can be a problem. 112 As we noted, in creative pr
> You come across a fast-moving stream. What is the best way to cross it?
> What are the causes and consequences of political behavior?
